Travel and telecom head list of industries boosting programmatic advertising

New Turn Advertising Industry Index finds global marketers are quickly embracing data-driven marketing and highlights mobile marketing as a key growth area

Travel, telecom and financial services lead the list of verticals making the big move to become more competitive in the programmatic advertising arena, according to a new global report.

The latest Turn Advertising Industry Index (TAII) compared data-driven marketing trends from January through April this year compared with the same four-month period in 2013. It found travel and telecom made the biggest move to become more competitive in the programmatic advertising space, both jumping by 49 per cent year-on-year.

They were followed by financial services, which was 38 per cent more competitive over the same period. Rounding out the top five were the arts and entertainment sector (15 per cent), and home and garden (11 per cent).

The list of top five industry vertical categories making the move to be less competitive in programmatic advertising globally was led by sports and recreation (78 per cent less competitive). In second place was auto (71 per cent less competitive) and apparel (36 per cent), followed by office products (7 per cent) and health and beauty sectors (3 per cent). .

Related: Programmatic advertising: Digital marketing’s saviour or real-time headache?

The TAII report is based on analysing data from its Turn real-time bidding (RTB) platform, which makes more than 100 billion data-driven advertising decisions and analyses 1.5 billion anonymous customer attributes on a daily basis.

Across marketing channels, mobile and video saw sharp increases in spend as marketers look to capitalise on these increasingly important channels, TAII found. Mobile marketing spend , for example, was up 109 per cent year-on-year, while video ad spending rose 65 per cent.

Display advertising also rose by 20 per cent, and social advertising budgets increased by the same percentage according to the year-on-year comparison.

The global analysis also reported that marketers are paying more to reach target customers as competition increases, with effective cost-per-thousand impressions (eCPM or revenue per thousand impressions) for social, display and mobile advertising all increasing from January to April 2014. Social advertising saw the highest eCPM jump of 64 per cent, followed by display eCPM, which was up 21 per cent. Mobile eCPM also rose 8 per cent.

Read more: Ensighten chief: CMO,CIO roles are getting closer, but technology tastes remain distinct

“As spend and competition increase in mature markets, brands and agencies are using sophisticated audience-centric strategies to drive planning for programmatic advertising,” commented Turn’s Asia-Pacific managing director, Cindy Deng. “We are seeing a clear shift in marketers’ understanding of how to transform data and insights into an advantage against the competition.

“In Australia, advertising activity accelerates through Q2 to the end of the year and we expect competition to be high, especially in video.”

Deng believed the space marketers should watch is programmatic TV. "Australia poses an interesting opportunity for broadcast networks and their online properties, which may see programmatic assisting in shifting the fortunes of monetising video content," she commented.

"Already we are seeing trends in the local online video market and across the Asia-Pacific region that suggest media agencies are investing more in the TV networks’ online catch-up TV inventory, which may serve to augment the flat TV advertising market."

For Deng, the TAII report also showed that volatility in ad spend patterns is smoothing out, particularly compared to a year ago.

"This would suggest that in the last year, media planning has become more strategic and data-driven, which validates the power and effectiveness of using audience insights to drive data-informed marketing," she told CMO. "The core bellwether industries of financial services, travel and telecom are already revealing the benefits of capturing tremendous amounts of programmatic and data spend and serve as models for the maturing planning of the entire marketplace.

"Local marketers should keep a firm view on the global trends, which for 2014 include a much tighter alignment and shorter time horizon between trends and the evolution of the programmatic space globally. For example, Europe is catching up very quickly to what is happening in the US."

Turn’s customer base includes Chrysler, Experian, Kimberly-Clark, Microsoft, OMD, Thomas Cook and Toyota.

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, or join us on Facebook: https://www.facebook.com/CMOAustralia

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

3 marketing mistakes to overcome when courting prospective customers

Marketing that urges respondents to ‘buy now’ is a little like asking someone to marry you on your first date. At any time, only 3 per cent of the market is looking for what you’re selling, so the chances of your date randomly being ‘The One’ is pretty slim.

Sabri Suby

Founder, King Kong

Why are we dubious about deep learning?

The prospect of deep learning gives those of us in the industry something to get really excited about, and something to be nervous about, at the same time.

Katja Forbes

Founder and chief, sfyte

Why you can’t afford to fail at CX in 2019

In 1976 Apple launched. The business would go on to change the game, setting the bar for customer experience (CX). Seamless customer experience and intuitive designs gave customers exactly what they wanted, making other service experiences pale in comparison.

Damian Kernahan

Founder and CEO, Proto Partners

RIP holden

Max Polding

Marketing professor: For Holden, brand nostalgia ain’t what it used to be

Read more

Where does the claim that 2 million Australians have tested come from ? Anecdotal information suggests that this is way off the mark.

David Andersen

DNA-based marketing: The next big thing?

Read more

Thank you for the info , being part of a digital marketing agency in kerala , this proved handy and get to know with upcoming trends. htt...

Dotz Web Technologies

Predictions: 9 digital marketing trends for 2019

Read more

So who then is correct? The Research or The skilled Digital people.

Anene

Report reveals Australia faces digital skills shortage

Read more

The blogs are really appreciable and one can trust the knowledge and information provided in the writing.The article you do produce on a ...

Prince Arora

5 brand strategy lessons from Gelato Messina

Read more

Latest Podcast

More podcasts

Sign in